Watch out for this lumpy skin disease beneficiary stock that planned capacity expansion, zooms 15 per cent!

The stock returns on Monday have shot through the roof as it jumped nearly 15 per cent on a day when markets are in turmoil. Hence, keep a close watch on this stock

I’m sure these days, you all must be hearing about the saddening state of our country’s cattle regarding the recent outbreak of lumpy skin diseases in India.  

The cumulative number of cattle deaths caused by lumpy skin disease has gone up to 97,435 as of September 23, an almost twofold rise from the last count of 49,682 deaths recorded about three weeks ago, according to official data.   

The data available from Ministry of Fisheries, Animal Husbandry & Dairying shows that the lumpy skin disease has spread across 251 districts in 15 states and affected over 20 lakh animals till September 23.   

Lumpy skin disease is caused by the skin disease virus (LSDV), which belongs to Genus CaprIPOxvirus, part of the Poxviridae family (smallpox and monkeypox viruses are also members of the same family). LSDV is antigenically similar to the sheeppox virus (SPPV) and goatpox virus (GTPV) or has similar immune responses to these viruses. It is not a zoonotic disease, so it does not infect humans. It is a contagious, vector-borne disease transmitted by vectors such as mosquitoes, some horseflies & ticks, and usually affects host animals such as cattle & buffaloes. 

Usually, the mortality or rate of death is less than 10 per cent as per a study; however, the reported mortality of the current outbreak in India is up to 15 per cent, particularly in cases that are being reported especially in Rajasthan.   

Progressive Dairy Farmers Association (PDFA) said that dairy farmers in Punjab have witnessed a 15-20 per cent fall in milk production, following the outbreak of lumpy skin disease in the state.  

Amidst this adversity, there is an opportunity for Hester Biosciences. Hester is one of the leading poultry and animal healthcare companies in India. It is the second-largest poultry vaccine manufacturer in India. Hester currently has a 75 per cent market share in PPR vaccines for sheep and goats, across the world.  

The lumpy skin disease outbreak, impacting cattle, has been addressed in India by immunising cattle against the disease with Goat Pox Vaccine.   

Scientifically, Goat Pox Vaccine (Uttarkashi Strain) may be used as a heterologous vaccine to immunise cattle against lumpy skin disease. Hester acquired the technology for manufacturing Goat Pox vaccine (Uttarkashi Strain) from Indian Veterinary Research Institute (IVRI) and commercialised the vaccine on November 10, 2014.   

Hester currently has been supplying Goat Pox Vaccine via state government tenders to immunise cattle against lumpy skin disease in their respective states. The company has also bid for a national tender for supplying the concerned vaccine.  

For manufacturing additional quantities of the vaccine and ensuring the continuance of manufacturing & supplying of all other vaccines against poultry, sheep, goat, and cattle, the company is undergoing capacity expansion, which is expected to be completed by January 2023.  

The stock returns on Monday have shot through the roof as it jumped nearly 15 per cent on a day when markets are in turmoil. Hence, keep a close watch on this stock, which is likely to be in the limelight very soon!